In February 2001 a wave of protests among ethnic minorities swept through the central highlands of Vietnam. The demonstrators were angry over government corruption and encroachment on their ancestral lands by members of the Vietnamese majority. These developments quickly had an impact on political maneuvering prior to the ninth National Congress of the Communist Party of Vietnam. The stewardship of Secretary-General Le Kha Phieu came under challenge by senior retired leaders. Phieu also was implicated in a wiretapping scandal involving the military intelligence service.

Prior to the National Congress, party delegates decided to select Nong Duc Manh as party leader. Manh, a member of the Tay ethnic minority group, was respected for his considerable legislative experience as chairman of the National Assembly.

The National Congress was held on April 19–22. The party set a goal of doubling the country’s gross domestic product by 2010 and achieving an annual growth rate of 7.5% for the first five years. Secretary-General Manh quickly stamped his authority on Vietnam’s ongoing reform program. He immediately reshuffled key party and military leadership posts. He then ordered the implementation of a directive requiring all party and state officials to publicly declare their assets in an effort to curb corruption.

In June Manh obtained approval from the party’s Central Committee for controversial plans to construct a costly hydroelectric scheme at Son La in the north. This project was designed to provide future energy for industry and to control flooding. It would also displace 100,000 persons who would need to be resettled. In August Manh received party endorsement to carry out a thorough reform of the state-owned enterprise sector. In September he personally addressed the problem of ethnic minority grievances by visiting the central highlands. He directed government officials to work closely with local elders, ordered a step-up in the recruitment of ethnic minorities for government service, and offered financial support for the ailing coffee-growing industry.

The National Congress reaffirmed Vietnam’s commitment to a policy aimed at diversifying foreign relations. In March Vietnam hosted a visit by Russian Pres. Vladimir Putin. The two countries agreed to form a “strategic partnership” involving long-term economic cooperation and Russian arms sales. In October Russia announced that it would withdraw the last of its military forces from the Cam Ranh Bay naval station. Vietnam received visits by a number of Chinese officials, including Defense Minister Chi Haotian in February, Vice Pres. Hu Jintao in April, and National People’s Congress Chairman Li Peng in September. In midyear Vietnam, as chairman of the Standing Committee of the Association of Southeast Asian Nations (ASEAN), hosted the annual meeting of ASEAN foreign ministers, a meeting of the ASEAN Regional Forum, and a meeting of the “ASEAN Plus Three” (China, Japan, and South Korea). In July Vietnam hosted a groundbreaking visit by Kim Yong Nam, president of North Korea’s Supreme People’s Assembly, and in October the two countries agreed to expand bilateral trade and investment. Vietnam responded to the September 11 terrorist attacks in the U.S. by offering sympathy and condemning terrorism but warned against “overreacting” to the attacks. In the final quarter of the year, Vietnam and the U.S. ratified the Bilateral Trade Agreement, which meant that Vietnamese exports would be subject to much lower tariffs.